I’m not sure if you heard it this week, but CPAs across the country breathed a sigh of relief with the passing of the April 15 tax filing deadline. I know I haven’t seen many of my CPA friends since the beginning of the year as they’ve scrambled to help others file correctly and get the largest return possible. Depending on when your company’s fiscal year ends, most of you probably didn’t have to worry about corporate taxes. But the passing of the individual tax deadline got me thinking about some things you should consider—for both your personal and corporate taxes—throughout the year.
Tax Law Changes
Probably no surprise to anyone, changes to the tax code take place every year. For example, as of January 1 of this year, an extra 0.9% Medicare tax went into effect for individuals filing a joint return, earning more than $200,000. Depending on the tax code changes, your business and the way it reports expenses, revenues, and deductions may be affected. Knowing the areas that are changing, or even the possible changes, can help you prepare for the upcoming tax year.
Prepare Throughout the Year
Although tax season is a relatively short portion of the year—although for some it may be the longest portion of the year—there’s quite a bit you can do between the tax filing deadline and the end of your fiscal year to make sure you’re prepared. If you have a dedicated accountant, don’t wait until the last minute or worse, until after your fiscal year passes, to communicate about your taxes. Be sure to touch base regularly and schedule a meeting before the end of your fiscal year. A friend of mine suggested scheduling a meeting a few months before the end of your fiscal year to review changes and your tax planning.
I hope you all made the April 15 deadline, and hopefully I’ve given you a few things to think about over the coming months until tax season starts again.
How do you prepare for tax season?